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From 2026, the Fair Work Agency (FWA) will introduce significant changes to the employment landscape. Unlike previous systems, workers will not always need to bring claims themselves. The FWA will have the power to act proactively, inspect workplaces, review records, and require information. This represents a major shift in employer responsibilities, particularly for SMEs without robust HR and compliance systems.
Effectively, this is about proving your business is consistent, compliant, and fair. The following guide outlines what the FWA will do, the risks for employers, and practical steps to prepare.
The FWA is designed to promote fair and consistent workplace practices and provide guidance on work structure, pay, and employee rights. While it is not a traditional enforcement body, inspections and intervention will be a key part of how standards are assessed, particularly where complaints or concerns arise.
The Agency will have powers to:
Practical impact: Employers could face repayment demands, penalties, and additional costs even without an employee making a tribunal claim.
FWA inspections will assess evidence, not intention. Employers will need to demonstrate:
Inspections may not be scheduled in advance, so these standards must be embedded in day-to-day operations.
Tip: HR software with audit and compliance features, such as oneHR, can track training, policies, and holiday and absence records, creating a ready-made evidence trail.
Certain issues repeatedly create exposure:
For subcontractors or third-party workers, businesses must maintain a clear audit trail showing:
HR tools tip: HR software can centralise contracts and documentation, roles, and compliance checks to reduce risk.
1. Consistency and Transparency
2. A Safe Working Environment
3. Training That’s Actually Delivered
4. Proper Processes
5. Pay and Working Time Accuracy
6. Contracts and Policies
How software can help: Our HR and H&S software can support you in many ways. Some include:
Preparation is key. Don’t wait until the FWA is in force. Recommended actions include:
By taking these steps now, businesses can reduce risk, ensure compliance, and protect themselves from potential penalties.
The FWA reforms are not about adding unnecessary admin. They are about demonstrating that your business is run fairly and consistently. Clear processes, thorough documentation, and consistent application of policies will place employers in a strong position. Without them, risks are exposed, and the consequences can be significant.
Investing in proper systems, training, and HR software today ensures your business is ready, resilient, and compliant when the FWA begins operations.
Book a demo to see how oneHR can help to prepare for the Fair Work Agency.
Call: 0330 107 1037
Email: contact@onehrsoftware.com
September 8, 2020
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